Risk-averse Hazmat Network Design Considering Endogenous Risk and Uncertainty
- Resource Type
- Conference
- Authors
- Dong, Pengcheng; Yu, Guodong
- Source
- 2021 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) Industrial Engineering and Engineering Management (IEEM), 2021 IEEE International Conference on. :1536-1540 Dec, 2021
- Subject
- Aerospace
Components, Circuits, Devices and Systems
Computing and Processing
Engineering Profession
General Topics for Engineers
Nuclear Engineering
Robotics and Control Systems
Signal Processing and Analysis
Transportation
Hazardous materials
Uncertainty
Sensitivity analysis
Measurement uncertainty
Transportation
Industrial engineering
Reliability engineering
Hazmat network design
endogenous uncertainty
Benders decomposition
- Language
We consider a hazmat network design problem where designer selects a feasible set of facility locations and flow assignments so that the total cost and transportation risk are minimized. While hazmat carriers choose preferred routes to transport, in particular, the route-choice is uncertain and depends on the available facilities and travel links. To improve service reliability under uncertainty, we incorporate risk-averse measures based on Conditional value-at-risk (CVaR). We model the problem as a mixed-integer trilinear optimization problem, then an equivalent linearization reformulation and a Benders decomposition algorithm with several acceleration strategies are proposed to solve this model. Numerical experiments demonstrate the effectiveness of proposed model and algorithm and give management insights.